Business Development Europe: Local Partners v's Distributors

Why is selling directly through local partners far more effective than selling through distributors? Here's why. There is no substitute for operating your own company. Selling products and services directly through local partners gives your company full control and final say as to how your product or service is received by customers.

Relying upon distributors means giving up 2 valuable core business factors:
1. control over your brand image and
2. representation of your company and its products/services.

I'm no business graduate however I know enough to recognise that these points alone are where companies spend millions anually in building consumer and market confidence. So why risk throwing this hard won aspect away on a distributor?

Poor handling of your product and unsatisfactory customer service from a distributor could harm your brand’s image. They may find it difficult to follow your company’s core sales strategy and participate in key promotional programs that serve to reinforce your brand.

Distributors may demand exclusivity to your product, altogether placing your European revenue dependence on a sole distributor thereby limiting your business network penetration. Most distributors also expect heavy price reductions or substantial credit terms, or both.

Distributors owe themselves to a wide variety of products and as a result marketing for your products would be left to their discretion. This could also effect the way your products/services are priced, yet another facet of control you may lose.

Good distributors are hard to find and even harder to attract to sell your products. So what will you do in the meantime? And how many of your competitors will be taking advantage of your lag in getting to the market?

Experienced local partners understand that companies want to drive sales, increase profitability, and further customer satisfaction. They also understand that building a network of local partners and closely supporting them and their channels is a surefire way to succesfully getting your products/services into Europe.

There will always be an option to sell your products via a distributor, if & when a good one has been found. However selling directly via local partners gets your business into the market at the right time, levering the control and power to increase sales and profits. Remember, there is no substitute for operating your own company!